Higher rent for tenant selection

2 Replies

Will increasing the rent, above other area rentals, limit possible unwanted tenant applicants? The area we are in does not have many 'nice' rentals. Most are smaller and lesser quality than what we offer. I feel the higher rent is justified. We have set our rules/requirements high as well to limit the amount of tenants that are not qualified, either financial or background check. Obviously we want good qualified tenants without having to turn down a lot of applicants. Thanks

This is a common practice in NYC and it works. But, if you charge more, tenants expect the landlord to maintain the building to a higher standard and to be responsive to complaints. 

Regardless of what you "think" the rent should be, the market will dictate what rents you charge, not you. Be careful about having the nicest/largest rental in your area though. The good renters will make a choice on the collective features of the area, not just your unit.

It's a numbers game to find good quality tenants.  You will have to turn some down in order to find the right ones.  However, you can use prescreening queues in your marketing to your advantage. @brandonturner wrote a good article on how to quickly screen tenants: http://www.biggerpockets.com/renewsblog/2015/08/31...  

If yours is higher quality, you should call those reasons out in your marketing.  I'd also focus my marketing on the channels where the type of tenant you want would be looking at.  I.e. if you want to attract college tenants, you would put up flyers on campus; if you want someone from the big business in town, find someone that works there and have them put up a classified on the company intranet.

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